15 hour National USPAP Coarse Exam
Questions and Answers
the iiappraisal iifoundation iihas iithe iiauthority iito iienforce iithe iirequirements iiof iiUSPAP?
iiT iior iiF ii- iiAnswers ii-false
currently, iithe iiboards iiwithin iithe iiappraisal iifoundation iiinclude: ii- iiAnswers ii-appraisal
iistandards iiboard
appraiser iiqualifications iiboard
board iiof iitrustees
which iifoundation iiboard iiis iiresponsible iifor iiUSPAP? ii- iiAnswers ii-appraisal iistandards
iiboard ii(ASB)
qualification iicriteria iifor iiappraiser iicertification iiand iirecertification iiare iidisseminated iito
iistate iiappraisal iiboards iiby iithe ii: ii- iiAnswers ii-appraiser iiqualifications iiboard ii(AQB)
which iientity iiappoints iimembers iiof iithe iiAQB iiand iiASB? ii- iiAnswers ii-board iiof
iitrustees
which iientity iiis iiresponsible iifor iiestablishing iieducation iiand iiexperience iirequirements
iifor iilicensing iiand iicertification iiof iiappraisers? ii- iiAnswers ii-appraiser iiqualifications
iiboard
advisor iiopinions iiare iibest iidescribed iias ii- iiAnswers ii-not iipart iiof iithe iiUSPAP, iibut
iiincluded iias iireference iimaterial
USPAP iiis iiwritten, iiamended, iiand iiinterpreted iiby iithe: ii- iiAnswers ii-appraisal
iistandards iiboard
who iiis iiresponsible iifor iiissuing iicredentials iito iiindividual iiappraisers? ii- iiAnswers ii-state
iiappraisal iiregulatory iiagencies
which iiis iiNOT iia iiresponsibility iiof iithe iiAppraisal iiSubcommittee ii(ASC)?
a) iimonitoring iithe iipractices, iiprocedures, iiand iiactivities iiof iithe iiappraisal iifoundation
b) iimaintaining iia iinational iiregistry iiof iilicensed iiand iicertified iiappraisers
c) iioverseeing iieach iistates iiappraiser iilicensing iiand iicertification iiprogram
,d) iiwriting, iiinterpreting, iiand iiamending iiUSPAP ii- iiAnswers ii-writing, iiinterpreting, iiand
iiamending iiUSPAP
USPAP iiis iienforced iiby: ii- iiAnswers ii-state iiappraiser iilicensing iicertification iiagencies
which iientity iimaintains iithe iiofficial iinational iiregistry iiof iistate iicertified iiand iilicensed
iiappraisers? ii- iiAnswers ii-appraisal iisubcommittee ii(ASC)
why iiare iiUSPAP iiadvisory iiopinions iiissued? ii- iiAnswers ii-to iioffer iiadvice
which iiof iithese iiis iiconsidered iian iiintegral iipart iiof iiUSPAP iiand iihas iithe iisame iiweight
iias iithe iicomponents iithey iiaddress? ii- iiAnswers ii-comments
which iipart iiof iiUSPAP iiestablishes iithe iirequirements iifor iiwork iifile iicontent iifor iian
iiappraisal iior iiappraisal iireview iiassignment? ii- iiAnswers ii-record iikeeping iirule
the iifirst iistep iiin iithe iiappraisal iiprocess iiis: ii- iiAnswers ii-identify iithe iiproblem
which iistep iiin iithe iiappraisal iiprocess iiinvolves iicommunication iiof iithe iiappraisers
iiopinions iiand iiconclusions? ii- iiAnswers ii-reporting
in iiUSPAP, iithe iiappraisal iiprocess iiis iidivided iiinto iitwo iidistinct iitypes iiof iiactivity:
ii_______&________ ii- iiAnswers ii-development ii& iireporting
chapter ii1 iisummary: ii- iiAnswers ii-1. iiThe iiconfluence iiof iihistorical iieconomic iievents
iiand iithe iidevelopment iiof iithe iiuniform iiappraisal iistandards iiand iiregulatory iistructure
iioccurred iiin iithe iilate ii1980s.
2. iiEight iiU.S. iibased iiprofessional iiappraisal iiorganizations iicreated iiThe iiAppraisal
iiFoundation iiin ii1987 iito iipromulgate iistandards iiof iipractice iiand iiminimum iiappraiser
iiqualifications iicriteria iifor iithe iibenefit iiof iithe iipublic.
3. iiThe iidevelopment iiof iistandards iiplaced iigreater iiexpectations iion iithe iiappraiser iito
iiact iiin iia iimanner iithat iipromotes iipublic iitrust iiand iiconfidence iiin iiappraisal iiservices.
4. iiThe iiAppraisal iiStandards iiBoard ii(ASB) iihas iicomplete iiauthority iiover iithe
iidevelopment iiand iipromulgation iiof iiappraisal iistandards ii(USPAP) iiwithin iithe
iiFoundation.
5. iiThe iiFoundation iisupports iithe iiwork iiof iiits iiindependent iiboards iiby iiproviding iistaff
iisupport iifor iitheir iiactivities, iiby iifunding iitheir iioperations, iipublishing iiUSPAP,
iiestablishing iiqualification iirequirements, iiand iiissuing iiother iiBoard iicommunications.
6. iiThe iiASC iioversees iithe iistates iito iiensure iithey iiare iiimplementing iithe iiminimum
iiqualifications iiand iistandards iiappropriately. iiIn iiturn, iia iiresponsibility iiof iithe iistates iiis
iito iiensure iithat iireal iiproperty iiappraisers iiwho iiperform iiappraisals iiin iireal iiestate
,iitransactions iithat iicould iiexpose iithe iiUnited iiStates iigovernment iito iifinancial iiloss iiare
iisufficiently iitrained iiand iitested iito iiassure iicompetency iiand iiindependent iijudgment
iiaccording iito iiuniform iistandards iiand iiethics.
8. iiUSPAP iiprovides iia iibasis iifor iiprofessional iipractitioners iito iijudge iitheir iiown iiwork
iiand iithe iiwork iiof iitheir iipeers. iiUSPAP iialso iiprovides iimembers iiof iithe iipublic, iiclients,
iiand iiother iiintended iiusers iiwith iia iibasis iifor iiexpectations iiregarding iiappraisal
iiservices.
USPAP iifacilitates iiuniform iienforcement iiof iistandards, iiand iitogether iiwith iicompetent
iienforcement iiactivity, iibrings iidiscipline iito iithose iiwho iiabuse iithe iipublic iitrust.
9. iiPublic iitrust iiis iiessential iifor iiorderly iicommerce iiin iiour iisociety.
10. iiPubl
to iiwhich iiproperty iitypes iidoes iiUSPAP iiapply? ii- iiAnswers ii-both iitangible iiand
iiintangible iiproperty
the iiPREAMBLE iistates iithat iiUSPAP iiintended iito iibenefit: ii- iiAnswers ii-appraisers iiand
iiusers iiof iiappraisal iiservices
when iiobligated iiby iilaw iior iiregulation, iian iiappraiser ii_______ iicomply iiwith iiUSPAP. ii-
iiAnswers ii-must
what iiis iithe iistated iipurpose iiof iiUSPAP? ii- iiAnswers ii-promote iiand iimaintain iia iihigh
iilevel iiof iipublic iitrust iiin iiappraisal iipractice
the iirequirement iifor iiUSPAP iicompliance iiin iian iiappraisal iiassignment iicould iibe iithe
iiresult iiof: ii- iiAnswers ii-- iivoluntary iichoice iiby iithe iiappraiser ii
- iiagreement iiwith iithe iiclient ii
- iilaw iior iiregulation
an iiappraiser iihas iithe iiprofessional iiresponsibility iito iiidentify iithe iicapacity iiin iiwhich iihe
iior iishe iiis iiperforming. iiT iior iiF? ii- iiAnswers ii-true
a iivaluation iiservice iithat iiis iipremised iiupon iiadvocacy: ii- iiAnswers ii-it iicannot iibe
iiperformed iiby iian iiindividual iiacting iias iian iiappraiser
when iiperforming iivaluation iiservices iioutside iiof iiappraisal iipractice, iian iiindividual iimust
iibe iicareful iinot iito ii________ iithe iiclient iiand iiother iiintended iiusers iiabout iihis iior iiher
iirole ii- iiAnswers ii-mislead
USPAP iistates iithat iiin iia iisituation iiwhen iian iiindividual iiis iinot iirequired. iiby iilaw,
iiregulation, iior iiagreement iito iicomply iiwith iiUSPAP: ii- iiAnswers ii-the iiindividual iishould
iistill iicomply iiwhen iihe iior iishe iiis iiacting iias iian iiappraiser
, chapter ii2 iisummary ii- iiAnswers ii-- iiIn iithis iichapter, iiwe iiaddressed iithe iiPREAMBLE
iiand iiwhen iiUSPAP iiapplies.
- iiThe iiPREAMBLE iisets iiforth iithe iipurpose iiof iiUSPAP, iiwhich iiis iito iipromote iiand
iimaintain iia iihigh iilevel iiof iipublic iitrust iiin iiappraisal iipractice.
- iiWe iidiscussed iiwhen iiUSPAP iicompliance iiis iirequired. iiAn iiappraiser iimust iicomply
iiwith iiUSPAP iiwhen iirequired iiby iilaw, iiregulation, iior iiagreement iiwith iithe iiclient iior
iiintended iiusers iito iicomply.
- iiAn iiappraiser iishould iicomply iiwith iiUSPAP iiany iitime iihe iior iishe iiis iiperforming iia
iivaluation iiservice iias iian iiappraiser.
- iiFinally, iiwe iiaddressed iithe iiissue iiof iian iiindividual's iiUSPAP iiobligations iiwhen iihe iior
iishe iiis, iiat iileast iipart iiof iithe iitime, iian iiappraiser, iiand iiprovides iivaluation iiservices
iioutside iiof iiUSPAP iiin iianother iirole.
- iiWhen iiproviding iivaluation iiservices iioutside iiof iiUSPAP, iian iiindividual iiis iistill
iirequired iito iinot iimisrepresent iihis iior iiher iirole.
an iiappraiser iiis iipermitted iito iibe iibiased iiwhen iiperforming iian iiappraisal, iias iilong iias
iithe iibias iiis iiproperly iidisclosed. iiT iior iiF? ii- iiAnswers ii-false
a iipreference iior iiinclination iithat iiprecludes iian iiappraisers iiimpartiality, iiindependence,
iior iiobjectivity iiis: ii- iiAnswers ii-bias
if iian iiappraiser iiassumes iia iicondition iito iibe iitrue iithat iidoes iinot iiexist iifor iithe
iipurposes iiof iianalysis, iithis iiis iian iiexample iiof: ii- iiAnswers ii-a iihypothetical iicondition
a ii________ ii________ iiis iiused iito iiappraise iia iiproperty iiunder iia iicondition iicontrary
iito iiknown iifact ii- iiAnswers ii-hypothetical iicondition
if iian iiappraiser iiassumes iia iicondition iito iibe iitrue, iiand iievidence iisupports iithat iibelief,
iialthough iithat iifact iiis iinot iicertain, iithis iiis iian iiexample iiof: ii- iiAnswers ii-an
iiextraordinary iiassumption
*an iiopinion, iibased iion iisupporting iimarket iidata, iiof iithe iilength iiof iitime iithat iithe
iiproperty iiinterest iibeing iiappraised iiwould iihave iibeen iioffered iion iithe iimarket iiprior iito
iithe iihypothetical iiconsummation iiof iisale iiat iimarket iivalue iion iithe iieffective iidate iiof
iiappraisal ii- iiAnswers ii-exposure iitime
______- iithe iiactual iior iiestimated iiamount iirequired iito iicreate, iireproduce, iireplace iior
iiobtain iia iiproperty ii- iiAnswers ii-cost
_______- iithe iiamount iiasked, iioffered, iior iipaid iifor iia iiproperty ii- iiAnswers ii-price
_______- iithe iimonetary iirelationship iibetween iiproperties iiand iithose iiwho iibuy, iisell, iior
iiuse iithose iiproperties, iiexpressed iias iian iioption iiof iithe iiworth iiof iia iiproperty iiat iia
iigiven iitime ii- iiAnswers ii-value
Questions and Answers
the iiappraisal iifoundation iihas iithe iiauthority iito iienforce iithe iirequirements iiof iiUSPAP?
iiT iior iiF ii- iiAnswers ii-false
currently, iithe iiboards iiwithin iithe iiappraisal iifoundation iiinclude: ii- iiAnswers ii-appraisal
iistandards iiboard
appraiser iiqualifications iiboard
board iiof iitrustees
which iifoundation iiboard iiis iiresponsible iifor iiUSPAP? ii- iiAnswers ii-appraisal iistandards
iiboard ii(ASB)
qualification iicriteria iifor iiappraiser iicertification iiand iirecertification iiare iidisseminated iito
iistate iiappraisal iiboards iiby iithe ii: ii- iiAnswers ii-appraiser iiqualifications iiboard ii(AQB)
which iientity iiappoints iimembers iiof iithe iiAQB iiand iiASB? ii- iiAnswers ii-board iiof
iitrustees
which iientity iiis iiresponsible iifor iiestablishing iieducation iiand iiexperience iirequirements
iifor iilicensing iiand iicertification iiof iiappraisers? ii- iiAnswers ii-appraiser iiqualifications
iiboard
advisor iiopinions iiare iibest iidescribed iias ii- iiAnswers ii-not iipart iiof iithe iiUSPAP, iibut
iiincluded iias iireference iimaterial
USPAP iiis iiwritten, iiamended, iiand iiinterpreted iiby iithe: ii- iiAnswers ii-appraisal
iistandards iiboard
who iiis iiresponsible iifor iiissuing iicredentials iito iiindividual iiappraisers? ii- iiAnswers ii-state
iiappraisal iiregulatory iiagencies
which iiis iiNOT iia iiresponsibility iiof iithe iiAppraisal iiSubcommittee ii(ASC)?
a) iimonitoring iithe iipractices, iiprocedures, iiand iiactivities iiof iithe iiappraisal iifoundation
b) iimaintaining iia iinational iiregistry iiof iilicensed iiand iicertified iiappraisers
c) iioverseeing iieach iistates iiappraiser iilicensing iiand iicertification iiprogram
,d) iiwriting, iiinterpreting, iiand iiamending iiUSPAP ii- iiAnswers ii-writing, iiinterpreting, iiand
iiamending iiUSPAP
USPAP iiis iienforced iiby: ii- iiAnswers ii-state iiappraiser iilicensing iicertification iiagencies
which iientity iimaintains iithe iiofficial iinational iiregistry iiof iistate iicertified iiand iilicensed
iiappraisers? ii- iiAnswers ii-appraisal iisubcommittee ii(ASC)
why iiare iiUSPAP iiadvisory iiopinions iiissued? ii- iiAnswers ii-to iioffer iiadvice
which iiof iithese iiis iiconsidered iian iiintegral iipart iiof iiUSPAP iiand iihas iithe iisame iiweight
iias iithe iicomponents iithey iiaddress? ii- iiAnswers ii-comments
which iipart iiof iiUSPAP iiestablishes iithe iirequirements iifor iiwork iifile iicontent iifor iian
iiappraisal iior iiappraisal iireview iiassignment? ii- iiAnswers ii-record iikeeping iirule
the iifirst iistep iiin iithe iiappraisal iiprocess iiis: ii- iiAnswers ii-identify iithe iiproblem
which iistep iiin iithe iiappraisal iiprocess iiinvolves iicommunication iiof iithe iiappraisers
iiopinions iiand iiconclusions? ii- iiAnswers ii-reporting
in iiUSPAP, iithe iiappraisal iiprocess iiis iidivided iiinto iitwo iidistinct iitypes iiof iiactivity:
ii_______&________ ii- iiAnswers ii-development ii& iireporting
chapter ii1 iisummary: ii- iiAnswers ii-1. iiThe iiconfluence iiof iihistorical iieconomic iievents
iiand iithe iidevelopment iiof iithe iiuniform iiappraisal iistandards iiand iiregulatory iistructure
iioccurred iiin iithe iilate ii1980s.
2. iiEight iiU.S. iibased iiprofessional iiappraisal iiorganizations iicreated iiThe iiAppraisal
iiFoundation iiin ii1987 iito iipromulgate iistandards iiof iipractice iiand iiminimum iiappraiser
iiqualifications iicriteria iifor iithe iibenefit iiof iithe iipublic.
3. iiThe iidevelopment iiof iistandards iiplaced iigreater iiexpectations iion iithe iiappraiser iito
iiact iiin iia iimanner iithat iipromotes iipublic iitrust iiand iiconfidence iiin iiappraisal iiservices.
4. iiThe iiAppraisal iiStandards iiBoard ii(ASB) iihas iicomplete iiauthority iiover iithe
iidevelopment iiand iipromulgation iiof iiappraisal iistandards ii(USPAP) iiwithin iithe
iiFoundation.
5. iiThe iiFoundation iisupports iithe iiwork iiof iiits iiindependent iiboards iiby iiproviding iistaff
iisupport iifor iitheir iiactivities, iiby iifunding iitheir iioperations, iipublishing iiUSPAP,
iiestablishing iiqualification iirequirements, iiand iiissuing iiother iiBoard iicommunications.
6. iiThe iiASC iioversees iithe iistates iito iiensure iithey iiare iiimplementing iithe iiminimum
iiqualifications iiand iistandards iiappropriately. iiIn iiturn, iia iiresponsibility iiof iithe iistates iiis
iito iiensure iithat iireal iiproperty iiappraisers iiwho iiperform iiappraisals iiin iireal iiestate
,iitransactions iithat iicould iiexpose iithe iiUnited iiStates iigovernment iito iifinancial iiloss iiare
iisufficiently iitrained iiand iitested iito iiassure iicompetency iiand iiindependent iijudgment
iiaccording iito iiuniform iistandards iiand iiethics.
8. iiUSPAP iiprovides iia iibasis iifor iiprofessional iipractitioners iito iijudge iitheir iiown iiwork
iiand iithe iiwork iiof iitheir iipeers. iiUSPAP iialso iiprovides iimembers iiof iithe iipublic, iiclients,
iiand iiother iiintended iiusers iiwith iia iibasis iifor iiexpectations iiregarding iiappraisal
iiservices.
USPAP iifacilitates iiuniform iienforcement iiof iistandards, iiand iitogether iiwith iicompetent
iienforcement iiactivity, iibrings iidiscipline iito iithose iiwho iiabuse iithe iipublic iitrust.
9. iiPublic iitrust iiis iiessential iifor iiorderly iicommerce iiin iiour iisociety.
10. iiPubl
to iiwhich iiproperty iitypes iidoes iiUSPAP iiapply? ii- iiAnswers ii-both iitangible iiand
iiintangible iiproperty
the iiPREAMBLE iistates iithat iiUSPAP iiintended iito iibenefit: ii- iiAnswers ii-appraisers iiand
iiusers iiof iiappraisal iiservices
when iiobligated iiby iilaw iior iiregulation, iian iiappraiser ii_______ iicomply iiwith iiUSPAP. ii-
iiAnswers ii-must
what iiis iithe iistated iipurpose iiof iiUSPAP? ii- iiAnswers ii-promote iiand iimaintain iia iihigh
iilevel iiof iipublic iitrust iiin iiappraisal iipractice
the iirequirement iifor iiUSPAP iicompliance iiin iian iiappraisal iiassignment iicould iibe iithe
iiresult iiof: ii- iiAnswers ii-- iivoluntary iichoice iiby iithe iiappraiser ii
- iiagreement iiwith iithe iiclient ii
- iilaw iior iiregulation
an iiappraiser iihas iithe iiprofessional iiresponsibility iito iiidentify iithe iicapacity iiin iiwhich iihe
iior iishe iiis iiperforming. iiT iior iiF? ii- iiAnswers ii-true
a iivaluation iiservice iithat iiis iipremised iiupon iiadvocacy: ii- iiAnswers ii-it iicannot iibe
iiperformed iiby iian iiindividual iiacting iias iian iiappraiser
when iiperforming iivaluation iiservices iioutside iiof iiappraisal iipractice, iian iiindividual iimust
iibe iicareful iinot iito ii________ iithe iiclient iiand iiother iiintended iiusers iiabout iihis iior iiher
iirole ii- iiAnswers ii-mislead
USPAP iistates iithat iiin iia iisituation iiwhen iian iiindividual iiis iinot iirequired. iiby iilaw,
iiregulation, iior iiagreement iito iicomply iiwith iiUSPAP: ii- iiAnswers ii-the iiindividual iishould
iistill iicomply iiwhen iihe iior iishe iiis iiacting iias iian iiappraiser
, chapter ii2 iisummary ii- iiAnswers ii-- iiIn iithis iichapter, iiwe iiaddressed iithe iiPREAMBLE
iiand iiwhen iiUSPAP iiapplies.
- iiThe iiPREAMBLE iisets iiforth iithe iipurpose iiof iiUSPAP, iiwhich iiis iito iipromote iiand
iimaintain iia iihigh iilevel iiof iipublic iitrust iiin iiappraisal iipractice.
- iiWe iidiscussed iiwhen iiUSPAP iicompliance iiis iirequired. iiAn iiappraiser iimust iicomply
iiwith iiUSPAP iiwhen iirequired iiby iilaw, iiregulation, iior iiagreement iiwith iithe iiclient iior
iiintended iiusers iito iicomply.
- iiAn iiappraiser iishould iicomply iiwith iiUSPAP iiany iitime iihe iior iishe iiis iiperforming iia
iivaluation iiservice iias iian iiappraiser.
- iiFinally, iiwe iiaddressed iithe iiissue iiof iian iiindividual's iiUSPAP iiobligations iiwhen iihe iior
iishe iiis, iiat iileast iipart iiof iithe iitime, iian iiappraiser, iiand iiprovides iivaluation iiservices
iioutside iiof iiUSPAP iiin iianother iirole.
- iiWhen iiproviding iivaluation iiservices iioutside iiof iiUSPAP, iian iiindividual iiis iistill
iirequired iito iinot iimisrepresent iihis iior iiher iirole.
an iiappraiser iiis iipermitted iito iibe iibiased iiwhen iiperforming iian iiappraisal, iias iilong iias
iithe iibias iiis iiproperly iidisclosed. iiT iior iiF? ii- iiAnswers ii-false
a iipreference iior iiinclination iithat iiprecludes iian iiappraisers iiimpartiality, iiindependence,
iior iiobjectivity iiis: ii- iiAnswers ii-bias
if iian iiappraiser iiassumes iia iicondition iito iibe iitrue iithat iidoes iinot iiexist iifor iithe
iipurposes iiof iianalysis, iithis iiis iian iiexample iiof: ii- iiAnswers ii-a iihypothetical iicondition
a ii________ ii________ iiis iiused iito iiappraise iia iiproperty iiunder iia iicondition iicontrary
iito iiknown iifact ii- iiAnswers ii-hypothetical iicondition
if iian iiappraiser iiassumes iia iicondition iito iibe iitrue, iiand iievidence iisupports iithat iibelief,
iialthough iithat iifact iiis iinot iicertain, iithis iiis iian iiexample iiof: ii- iiAnswers ii-an
iiextraordinary iiassumption
*an iiopinion, iibased iion iisupporting iimarket iidata, iiof iithe iilength iiof iitime iithat iithe
iiproperty iiinterest iibeing iiappraised iiwould iihave iibeen iioffered iion iithe iimarket iiprior iito
iithe iihypothetical iiconsummation iiof iisale iiat iimarket iivalue iion iithe iieffective iidate iiof
iiappraisal ii- iiAnswers ii-exposure iitime
______- iithe iiactual iior iiestimated iiamount iirequired iito iicreate, iireproduce, iireplace iior
iiobtain iia iiproperty ii- iiAnswers ii-cost
_______- iithe iiamount iiasked, iioffered, iior iipaid iifor iia iiproperty ii- iiAnswers ii-price
_______- iithe iimonetary iirelationship iibetween iiproperties iiand iithose iiwho iibuy, iisell, iior
iiuse iithose iiproperties, iiexpressed iias iian iioption iiof iithe iiworth iiof iia iiproperty iiat iia
iigiven iitime ii- iiAnswers ii-value
